Four airline losses in quick succession have brought to an end a long period of relatively benign loss experience for the aviation insurance market.

August has now become the second most expensive month, in terms of losses, for the airline industry since January 2002. But, despite the loss of aircraft hulls valued at over $170m, the monthly trend in the cost of losses has continued to fall steadily.

The overall loss profile for 2005 is still within the average for the last three years, both in terms of incidents with a value of loss of over $50m and incidents with more than 50 fatalities. Recent years have represented the safest in airline industry history.

Steve Doyle, aviation and aerospace global practice manager, Aon UK, said: "With the airline insurance renewal season approaching, it remains too early to predict whether these losses alone will result in changes to the current market environment.

"They are, however, likely to focus the attention of insurers as the critical fourth quarter approaches."

Topics